Bank sues former employees under federal organized-crime law
MONITEAU COUNTY —
Federal court documents obtained Thursday claim former bank employees embezzled close to $1 million over seven years.
Documents filed in the United States Court for the Western District of Missouri on May 18 show People's Bank of Moniteau County is suing former President and CEO David Hampton and his daughter, former Vice President and Chief Operating Officer Angela Flippin. The lawsuit also names Hampton's wife, Sherry, and Cole County resident Russell Philbert.
According to the lawsuit, Hampton and Flippin both claimed additional compensation time they were not entitled to as salaried employees. They allegedly hid this from the bank's board by funneling the money through the bank's employee insurance fund. Flippin also allegedly used her access to the bank's computer systems to set up recurring transfers into her personal savings accounts during 2014 and 2015. In addition, the two allegedly billed the bank for personal expenses, again funneling money through the employee insurance fund.
The documents also claim Flippin set up employee health insurance for Philbert, with whom she was romantically involved. Philbert did some part-time work for the bank but was never a full-time employee.
People's Bank wants to recover at least $930,815.80 from the group.
Among other laws, the bank filed its lawsuit under the federal Racketeer Influenced and Corrupt Organizations Act, also known as RICO. Written to combat organized crime, RICO targets people that engage in a long-term pattern of criminal activity while employed by or otherwise associated with an enterprise. The lawsuit claims the defendants qualify as a RICO enterprise because they associated with each other as a family and their actions affected the bank's interstate operations, with the activity taking place on a continual basis between 2010 and 2017.
Read the full probable cause statement below.